Reclassifying Discounts As Capital Expenditure: After Flipkart, Is The Income Tax Dept. Out To Get Ecommerce Firms?

(Source: Inc42 Media) Homegrown ecommerce player Flipkart recently lost an appeal against the Income Tax (IT) department over the reclassification of marketing expenditure and discounts as capital expenditure (capex), which involves substantial tax liabilities. Despite repeated appeals, the IT panel has refused to stay the $17.2 Mn (INR 110 ...11111111111111111

(Source: Inc42 Media) Homegrown ecommerce player Flipkart recently lost an appeal against the Income Tax (IT) department over the reclassification of marketing expenditure and discounts as capital expenditure (capex), which involves substantial tax liabilities. Despite repeated appeals, the IT panel has refused to stay the $17.2 Mn (INR 110 …